NFT Marketplace Platform: Do You Really Need It? This Will Help You Decide!
Anything and everything has value now. What is the big reason behind it? It is none other than crypto collectibles. Artists, entrepreneurs and investors are dealing in these unique assets daily. Where do the trading deals and transactions occur? Obviously, it happens on blockchain-powered platforms. Let us explore more about the potential of creating an NFT marketplace.
Analyzing the concept of Non-Fungibility
Generally, crypto collectibles are being sold as art pieces, domain names, gaming weapons, memes, music, photos, source code, sports goods, tweets, and videos. The duplication of content and its unauthorized sharing across platforms have affected artists significantly.
Non-Fungible Tokens (NFTs) are minted on various blockchain networks like Binance Smart Chain (BSC), Cardano, Ethereum, MultiChain, Polkadot, Solana, and TRON. Content creators benefit from its unique attributes. Crypto collectibles are interoperable, non-interchangeable, rare, and transparent.
A digital certificate of ownership is automatically generated for the person who launches a crypto collectible.. Accordingly, athletes. filmmakers, painters, photographers, singers, software developers etc will be safeguarded against copyright infringement, misuse of intellectual property, and morphing of their snaps and videos.
Know the current status of the NFT trading industry
Crypto collectibles have a mind-boggling market capitalization of $30.01 billion. This reflects the average price of an NFT multiplied by the total digital collectibles in the world. Investors are optimistic about these assets as the 24-hour trading volume is $11.36 billion as per CoinMarketCap.
The sales numbers of NFTs are impressive. Traders have bought a whopping 40,075 crypto collectibles worth $374.69 million in the first 7 days of September 2021. Importantly, secondary sales of digital collectibles (23448) are more than primary sales (16627).
What are the popular blockchains used for NFT Marketplace Platform Development?
Binance Smart Chain (BSC)
As an upgrade to the Binance Chain (BC), BSC is the right platform for operating Dapps and smart contracts. The uniqueness of the Binance Smart Chain (BSC) is its complete compatibility with the Ethereum Virtual Machine (EVM). BC and BSC are independent blockchain networks but operate in tandem.
Another special aspect about the Binance Smart Chain (BSC) is that it utilizes the Proof of Staked Authority (PoSA) consensus mechanism. Crypto holders can stake their Binance Coin (BNB) and turn it into validators.
Depending on the acceptance of the block, they will get payment processing charges depending on the number of peer-to-peer (P2P) transactions. Users can store their NFTs on digital wallets like Binance Chain Wallet and Trust Wallet.
Let’s get updated about the NFT trading platforms on BSC
Interestingly, Binance also operates its own NFT marketplace. Artists can organize premium events and exhibitions. Users can also participate in the Mystery Box Playground and get their hands on 3 kinds of collectibles (common, rare and unique).
Apart from that, AirNFTs, Juggerworld, and OpenBISea are the other NFT trading platforms functioning on the BSC. Traders who have BEP-2 and BEP-8 tokens can swap them with BEP-20 assets. Accordingly, artists can sell their work as BEP-721 and BEP-1155 collectibles.
Also on overorbit: How to find a trustworthy trading broker?
In terms of credibility, decentralization, and high operating capacity, the Ethereum blockchain network is ideal for creating NFT marketplaces. It is also the hub of creating DApps, Decentralized Finance (DeFi) platforms, and smart contracts.
Maximum flexibility is the hallmark of Ethereum as they can mint and list their assets as ERC-721, ERC-998, and ERC-1155 crypto collectibles. Are there any popular NFT trading platforms operating on Ethereum? Yes, obviously, Decentraland, Foundation, MakersPlace, OpenSea, Rarible, and SuperRare are the online marketplaces based on the Ethereum blockchain.
Why Ethereum 2.0 will make a big difference in the future?
Ethereum is all set to make a transition from the Proof of Stake (PoS) to the Proof of Work (PoW) consensus mechanism. This will lead to a reduction in congestion since there will be a base price in gas fees. Apart from that, investors have locked in assets worth $7.4 million ($30 billion). The future will revolve around liquid staking pools.
Subsequently, Ethereum’s partnership with Polygon (a sidechain) will offer huge advantages for artists and NFT investors. Polygon, which has its native token named MATIC, offers lower gas fees when compared to the crowded Ethereum platform.
Know the tech stack to create your NFT Marketplace
- Building a user-friendly interface using React.js.
- Compliance with various asset standards like BEP-721, BEP-1155, ERC-721, ERC-998, ERC-1155, and TRC-721.
- Decentralized storage platforms like Filecoin and IPFS.
- Front-end frameworks like Angular, React.js, and Vue.
- Tools like OpenZeppelin and Truffle for deploying DApps and smart contracts.
Besides that, NFT trading platforms can be built on other blockchains networks like Cardano, Flow, MultiChain, TRON, and WAX.
The latest updates regarding NFT marketplaces in the industry
OpenSea, Axie Infinity, SuperRare, NBA Top Shot, and Rarible are the top 5 NFT platforms in terms of the daily trading volume. Except for NBA Top Shot, the other 4 marketplaces operate on the Ethereum blockchain network. The 24-hour trading volume of these platforms are $95.41 million, $22.80 million, $623,830, $597,080, and $320,210 respectively.
While there is a lot of buzz about trading platforms, CryptoPunks is one of the popular projects. It contains 10,000 one-of-the-kind digital collectibles. Recently, it surpassed a landmark $1 billion in total sales.
Some of the new NFT trading platforms are BabyMew, OneOf, Serenade, Shoyu by SushiSwap, TokoMall, and Tpunks. Across backgrounds and countries, artists and investors are embracing crypto collectibles with open hands.
The must-know factors that will influence the future of crypto collectibles
Ethereum and Solana are two popular blockchain networks in the world. FTX, a famous crypto derivatives exchange, made a big move in the market. It launched its own NFT marketplace. Users can buy and sell crypto collectibles across both Ethereum and Solana.
Importantly, an advanced minting tool will assist users to list crypto collectibles. Similar to a bank, artists and investors can withdraw their digital collectibles anytime.
Crypto exchanges launching NFT marketplaces
It started with WazirX and Binance and the trend is continuing now. AAX and OKEx are also launching their own NFT trading platforms. Since they have a large user base and strong infrastructure, this gives them an ideal opportunity to progress quickly in the industry.
Reduction in gas fees
OpenSea has removed the gas fees for popular artists. This phenomenon is referred to as Lazy Minting. Accordingly, the Ethereum-based NFT marketplace has witnessed a humongous trading volume of $878.03 million in the last 7 days. According to DAppRadar, 11650 users processed 524,690 peer-to-peer (P2P) transactions on the blockchain-powered platform.
What is the cost to build an NFT Marketplace?
The cost of creating an NFT trading platform depends on various aspects. It relies on the choice of features and functionalities, the extent of customization needed by entrepreneurs, the nature of the blockchain network, and the type of tech stack.
Of course, an NFT buying and selling platform requires post-deployment services. Techpreneurs can hire an app development company and avail of other solutions like API integration, implementation of online marketing campaigns, the inclusion of payment gateways, layer 2 upgradation, security testing, and smart contract auditing.
As NFTs make a big impact in different industries, it is the ideal time for entrepreneurs to enter this booming space. Billion-Dollar fundraising deals and integration of crypto investments with the buying and selling of digital collectibles shows why this business is promising. Entrepreneurs can also begin their journey now and initiate NFT marketplace platform development.